Mitchell’s laws:
●The more federal budgets are cut and taxes increased, the weaker an economy becomes.
●Austerity is the government’s method for widening the gap between rich and poor, which ultimately leads to civil disorder.
●Until the 99% understand the need for federal deficits, the upper 1% will rule.
●To survive long term, a monetarily non-sovereign government must have a positive balance of payments.
●Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
●The penalty for ignorance is slavery.
●Everything in economics devolves to motive.
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(To a fly, bullsh*t smells good.)

What is the fundamental reason austerity angers the populace. No, it’s not just that austerity causes poverty. It’s not even just that austerity widens the gap between the rich and the rest.

Scattered street demonstrations popped up around Brazil Wednesday as protesters continued their collective cry against the low-quality public services they receive in exchange for high taxes and rising prices.

The actions followed another night of mass marches around Brazil and nearly a week of unrest that has shocked the country’s leaders.

Note the words “in exchange for.” Like the American public, Brazilians have been brainwashed with the BIG LIE, the myth that Monetarily Sovereign government taxes pay for Monetarily Sovereign government spending.

The people of Brazil justifiably are angry, but for the wrong reason. They believe,in essence, “We pay high taxes; so why don’t we receive service,” not understanding there is no relationship between taxes and services.

Beyond complaints about transit fares, protesters haven’t produced any concrete demands, mainly venting their anger at not just the government of President Dilma Rousseff, but with the entire governing system.

Attorney Agatha Rossi de Paula, who attended the latest protest in Sao Paulo along with her mother, called Brazil’s fiscal priorities “an embarrassment.”

“We just want what we paid in taxes back, through health care, education and transportation,” said the 34-year-old. “We want the police to protect us, to help the people on the streets who have ended up with no job and no money.”

The irony of the situation is that BIG LIE, not the lack of services, is what really created the tension. The rich (who control the politicians and the media) can’t mollify the populace by cutting taxes or by increasing social spending, because either action would narrow the gap between the rich and the rest — exactly what the rich don’t want.

By turning people into flies, and making people believe taxes pay for spending, the rich also have fostered the belief paying taxes entitles people entitled to the benefits of government spending.

It’s similar to the “problem” in America, where paying years of FICA has made American’s wrongly believe they are entitled to Social Security benefits. Yes, Americans are entitled to benefits, but not because they paid FICA.

Americans are entitled to benefits because a Monetarily Sovereign nation easily cans and should provide those benefits. Period. It has nothing to do with FICA.

People are more angered by paying for something not received, than by not receiving a “freebie.” After all, no one “deserves” a freebie.

In summary, austerity breeds anger and civil disobedience not only from the lack of services. It’s not only unemployment or poverty or having to pay taxes or the widening of the income gap. It is because of the BIG LIE, which creates the implication that taxes pay for entitlement.

When the Guillotines are erected, and the peasants march with torches and pitchforks (or simply when the liars are voted out), it will happen because the people have been brainwashed into believing they haven’t received what they have paid for.

10 Steps to Economic Misery: (Click here:)
1. Maintain or increase the FICA tax..
2. Spread the myth Social Security, Medicare and the U.S. government are insolvent.
3. Cut federal employment in the military, post office, other federal agencies.
4. Broaden the income tax base so more lower income people will pay.
5. Cut financial assistance to the states.
6. Spread the myth federal taxes pay for federal spending.
7. Allow banks to trade for their own accounts; save them when their investments go sour.
8. Never prosecute any banker for criminal activity.
9. Nominate arch conservatives to the Supreme Court.
10. Reduce the federal deficit and debt

Quite the opposite. The economy is near full employment with inflation threatening to break the 6.5% a year limit targeted by the government.

Cutting taxes in this situation could unleash uncontrollable inflationary pressures. It’s simply not an option.

In sum, Brazil and the U.S. are at very different phases of the economic cycle. Whereas tax cuts would help the recovery in the U.S. they might aggravate inflationary pressures that are already present in the Brazilian economy.